STMicroelectronics noted that the revenue performance was due to significantly better than expected market conditions throughout the quarter
STMicroelectronics (STM) has reported U.S. GAAP financial results for the third quarter ended 26 September 2020. The company reported third quarter net revenues of $2.67 billion, gross margin of 36 per cent operating margin of 12.3 per cent, and net income of $242 million or $0.26 diluted earnings per share.
“As we announced on First October 2020, our Q320 net revenues increased 27.8 per cent sequentially, coming in 690 basis points above the high end of our outlook range. This revenue performance was due to significantly better than expected market conditions throughout the quarter. Demand for Automotive products, our engaged customer programs in Personal Electronics, as well as Microcontrollers, were the main factors that contributed to this result. Third quarter gross margin came in at the mid-point of our range, and includes about 140 basis points of unsaturation charges,” noted Jean-Marc Chery, STMicroelectronics President & CEO.
better than expected market conditions
STM noted that the revenue performance was due to significantly better than expected market conditions throughout the quarter. It is expecting the revenue for full year 2020 to be approximate $9.97 billion. These figures represent a 4.3 per cent year-over-year growth and operating margin in double digits growth.
“Looking at the fourth quarter, we expect sequential revenue growth of about 12.0% at the mid-point. All product groups are expected to grow, except the RF Communications sub-group. Our gross margin is expected to be about 38.5%, including about 70 basis points of unsaturation charges,” added Chery.
The company has recently announced the acquistion of France-based SOMOS Semiconductor company. Infact the acquistion of Somos Semiconductor is the third by STMicroelectronics within four months span. It, in July 2020, has acquired the entire share capital of Ultra Wide Band specialist BeSpoon and of the cellular IoT connectivity assets of Riot Micro. The acquistion also marks second of a fabless semiconductor company by STMicrolectronics witin four months.
STM has also recently joined Silicon Catalyst as both a strategic and in-kind partner. It has also recently become an associate member of the Zhaga Consortium.